Tuesday, December 1, 2015 / by Tom Nickley
Following the frenetic sales season, the Orlando real estate market experienced a much-needed breather. July experienced a 40% increase of transactions. Comparatively, the October market decreased by 3% in transactions.
Nonetheless, central Florida home values continue to increase. Compared to last October, home values increased by 12.5%. This is excellent news, because this increase actually marks the 51st consecutive increase of home values. Between July 2011 and October 2015, home value increased by a total of 56%.
Additionally, active listings in the Orlando market sell quickly. The average home in central Florida spent 71 days on the market before entering a contract. The average home sold for 96.7% of the listed price.
Over the last four months, we’ve noticed a dramatic decrease in inventory of single-family homes. Currently, we have approximately four months of inventory on these kind of properties. Usually, any inventory less than six months reflects a seller’s market.
With the decreased inventory, pace of sales, and rising home value, there is still a lot of serious buyer activity. Interest rates are still historically low, sitting at about 4% as of October. However, the elephant in the room is the possibility the Fed may increase interest rates soon. They’re meeting in mid-December and interest rates are on the agenda. Although we cannot predict how much they will be raised, real estate professionals and experts agree it’s likely they will be raised.
What does this mean for buyers and sellers in central Florida? It’s a great time to be in the market for both buyers and sellers alike. There’s still an opportunity for buyers to close with a low interest rate. Sellers should consider listing now to gain exposure to strong prospective buyers in the market during the winter.
As always, if you have a question about buying or selling a home, give us a call or email today. We’re happy to help!